Volkswagen (VW) says it’s going to make investments as much as $5bn (£3.94bn) in US electrical automobile (EV) maker Rivian.
The deal creates a three way partnership that may permit the German automotive making large and the Tesla rival to share know-how.
Rivian shares jumped by round 50% after the announcement.
The tie-up comes as competitors intensifies between EV makers within the face of slowing gross sales and extra corporations getting into the market.
Beneath the settlement, VW stated it’s going to initially make investments $1bn within the electrical truck and SUV maker, with one other $4bn to be put into the corporate within the coming years.
Based in 2009, Rivian has not but posted a quarterly revenue. Within the first three months of 2024 the corporate misplaced $1.5bn.
VW has come below strain from rivals like Tesla and China’s BYD because it tries to develop its share of the EV market.
